Quarterly report pursuant to Section 13 or 15(d)

Commitments

v3.21.2
Commitments
9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments
8
. Commitments
Leases
In December 2010, the Company entered into a
non-cancellable
operating lease for office space and laboratory facilities in Yonkers, New York expiring in December 2025. In December 2011, the Company entered into an amendment which extended the term of the lease through December 2027 (the “Third Floor Lease”). The lease provides for the option to renew for two additional five-year terms. The premises were occupied in June 2011. Monthly rent payments began the date the office and laboratory facilities were ready for occupancy.
In January 2012, the Company entered into a
non-cancellable
operating lease for additional office space and laboratory facilities in the same building in Yonkers, New York expiring in December 2027 (the “Fourth Floor Lease”). The Fourth Floor Lease provides for an option to renew for two additional five-year terms. Effective August 1, 2017, the Company relinquished 10,912 square feet of space under the Fourth Floor Lease and was relieved of its obligations related to such space.
The Company performed an evaluation of its other contracts in accordance with Topic 842 and has determined that, except for the leases described above, none of its contracts contain a lease.
The balance sheet classification of the Company’s lease liabilities was as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
Description
  
September 30,
2021
    
December 31,
2020
 
Operating lease liabilities:
                 
Current portion of lease liabilities
   $ 654      $ 644  
Long-term portion of lease liabilities
   $ 2,700      $ 2,959  
Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. The leases are renewable at the end of the lease term at our option. For the purposes of determining the remaining lease term in contemplation of available extensions, the Company did not consider either renewal to be probable at this time. In determining the present value of lease payments, the Company estimated its incremental borrowing rate, or discount rate, based on the information available at the adoption date of Topic 842. The discount rate used to determine the operating lease liability was 9.93%.
As of September 30, 2021, the maturities of our operating lease liabilities were as follow
s
 (in thousands):
 
 
 
 
 
 
    
Amount
 
October 1, 2021 - December 31, 2021
   $ 171  
Year ending December 31:
        
2022
     693  
2023
     707  
2024
     721  
2025
     736  
Thereafter
     1,452  
    
 
 
 
Total lease payments
     4,480  
Less: Present value adjustment
     (1,126
    
 
 
 
Operating lease liabilities
     3,354  
    
 
 
 
Lease costs under the terms of the Company’s leases for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
 
    
2021
    
2020
    
2021
    
2020
 
Operating lease cost (1)
   $ 154      $ 154      $ 461      $ 461  
Variable lease costs (2)
     46        43        111        89  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total lease cost
   $ 200      $ 197      $ 572      $ 550  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
Operating lease payments included in the measurement of the Company’s lease liabilities are comprised of fixed payments according to the terms of the Company’s leases.
(2)
Variable lease payments consist of the Company’s utility costs billed by and paid to its landlord. Variable lease payments are presented as operating expenses in the Company’s Consolidated Statement of Operations in the same line item as expense arising from fixed lease payments and in net cash used in operating activities in the Company’s Statement of Cash Flows.